. Daily Index Analysis - Asian Stocks Fall on Tech and Inflation Woes

Daily Index Analysis – Asian Stocks Fall on Tech and Inflation Woes

Daily Index Analysis – Asian Stocks Fall on Tech and Inflation Woes

30 May 2024

Introduction:

Asian stocks tumble as tech woes and inflation anxieties rise. Major indexes like Shanghai Composite and Hang Seng see losses. European markets show tentative signs of recovery, while US stock futures plummet on inflation and interest rate worries.

Market In Focus for today – Dow Jones

Dow Jones Futures Drop Following Salesforce Revenue Miss.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 38580.04 | Negative Crossover | Bearish
  • MA 20: 38900.92 | Negative Crossover | Bearish
  • MA 50: 39178.86 | Negative Crossover | Bearish

Simple:

  • MA 5: 38678.48 | Negative Crossover | Bearish
  • MA 20: 38083.97| Negative Crossover | Bearish
  • MA 50: 39502.46 | Negative Crossover | Bearish

RSI (Relative Strength Index): 16.33| Bearish Zone| Negative


Stochastic Oscillator: 1.33| Sell Zone | Neutral

Resistance And Support Levels:

  • R1: 38589.11 | R2: 39089.16
  • S1: 38067.78| S2: 37610.29


Overall Sentiment: Bearish | Market Direction: Sell


Trade Suggestion: Sell Limit: 38671.28 | Take Profit: 38136.85| Stop Loss: 39014.13.

S&P 500:

S&P 500 Registers First Loss in Three Days as Nvidia’s Rise Fails to Lift Market.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 5286.81 | Negative Crossover | Bearish
  • MA 20: 5299.32 | Negative Crossover | Bearish
  • MA 50: 5286.13 | Negative Crossover | Bearish

Simple:

  • MA 5: 5296.33 | Positive Crossover | Bearish
  • MA 20: 5307.93| Positive Crossover | Bearish
  • MA 50: 5304.55 | Positive Crossover | Bearish

RSI (Relative Strength Index): 37.34| Sell Zone| Bearish


Stochastic Oscillator: 13.34 | Sell Zone | Neutral

Resistance And Support Levels:

  • R1: 5286.22 | R2: 5361.63
  • S1: 5226.46| S2: 5153.90


Overall Sentiment: Bearish| Market Direction: Sell


Trade Suggestion:  Sell Limit : 5299.02 | Take Profit: 5226.46| Stop Loss: 5345.98.

FTSE 100:

London’s FTSE Inches Up as Auto Trader Group Drives Gains.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 8234.71 | Negative Crossover | Bearish
  • MA 20: 8279.46 | Negative Crossover | Bearish
  • MA 50: 8398.77 | Negative Crossover | Bearish

Simple:

  • MA 5: 8239.69 | Negative Crossover | Bearish
  • MA 20: 8299.07| Negative Crossover | Bearish
  • MA 50: 8367.68 | Negative Crossover | Bearish

RSI (Relative Strength Index): 38.30| Selling Zone| Bearish


Stochastic Oscillator: 40.58| Neutral Zone | Positive

Resistance And Support Levels:

  • R1: 8273.2 | R2: 8440.6
  • S1: 8135.7| S2: 8053.6


Overall Sentiment: Neutral | Market Direction: Sell


Trade Suggestion:  Sell Limit : 8288.1 | Take Profit: 8128.2| Stop Loss: 8399.7.

Euro Stoxx 50:

Europe’s primary stock markets edged up on Thursday, partially recovering from the previous session’s losses driven by concerns over prolonged high interest rates.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 4992.40 | Negative Crossover | Bearish
  • MA 20: 5011.25 | Negative Crossover | Bearish
  • MA 50: 5024.36 | Negative Crossover | Bearish

Simple:

  • MA 5: 5003.6 | Negative Crossover | Bearish
  • MA 20: 5016.7| Negative Crossover | Bearish
  • MA 50: 507.84 | Negative Crossover | Bearish

RSI (Relative Strength Index): 40.02| Neutral Zone| Bullish


Stochastic Oscillator: 24.59| Negative Zone | Positive

Resistance And Support Levels:

  • R1: 5046 | R2: 5144
  • S1: 4937| S2: 4826


Overall Sentiment: Bearish | Market Direction: Sell


Trade Suggestion:  Sell Limit : 5007 | Take Profit: 4888| Stop Loss: 5082.


Elsewhere in the Indices Market:


Asian stocks decline on tech losses as concerns over rates and inflation grow.

The Shanghai composite is down at 0.62%. Overall, the Singapore MSCI up 0.04% to 308.68. Over in Hong Kong, the Hang Seng Index down 1.34% to 18,230.19. In Japan, the Nikkei 225 down 1.30% to 38,054.13, while the Topix index was down 0.56% to 2726.20. South Korea’s Kospi down 1.56% to 2,634.44. Australia S&P/ASX 200 down 0.49% to, 7,628.20.

European stock markets show a slight recovery.

The DAX futures contract in Germany traded 0.01 lower, CAC 40 futures in France up 0.22% to 7,952.85 and the UK 100 futures contract in the U.K. up 0.31% to 8,208.82.

US stock futures plunge sharply.

U.S. stock index futures dropped significantly on Thursday, continuing recent declines due to concerns over high inflation and tight monetary policy.

Indexes: Dow down 0.9%, S&P 500- down 0.4%, Nasdaq down 0.4%.


Corporate News:

Netflix, Inc. (NFLX) up 0.01% at 654.62, Tesla, Inc (TSLA) up 1.80% at 176.19, Apple Inc. (AAPL) up 0.20% at 190.29. Goldman Sachs Group Inc (GS) down 0.57% at 457.17, Morgan Stanley (MS) down 1.29% at 97.35.



Key Economic Events & Data Release Today:

(NZD) Annual Budget Release at 07:30.

(CHF) GDP (QoQ) (Q1) Forecast 0.3%, Previous 0.3% at 12:30.

(EUR) Unemployment Rate (Apr) Forecast 6.5%, Previous 6.5% at 14:30.

(USD) GDP (QoQ) (Q1) Forecast 1.6%, Previous 3.4% at 18:00.

(USD) Initial Jobless Claims Forecast 218K, Previous 215K at 18:00. (USD) Pending Home Sales (MoM) (Apr) Forecast –1.1%, Previous 3.4%